Nvidia’s Project Shield won’t be sold at a loss, company assures

Nvidia has stated that its Tegra-4 powered Project Shield console – which was revealed at CES yesterday – will not be sold at a loss. It makes a change from most consoles which are typically loss-leaders, in that their respective manufacturers hope to make back the loss on software or licensing deals.

Engadget reports that while the above is true for Sony, Microsft and Nintendo – that games are licensed to recoup hardware losses – the same cannot be said for Nvidia, as it is not in the game development or publishing business. Therefore, it can sell Project Shield on a raw hardware basis, retaining profits for itself.

Nvidia posted a blog update on the matter, and explained, “We’ll make our money by selling the device to gamers. This time-honored approach isn’t one we’re taking with Project Shield… our goal with it is to design and sell a truly great piece of hardware, one that fits comfortably in your hand, delights your eyes and blows out your ears.”